US dividend ETFs draw attention amid stock market volatility
Growing volatility in the Korean stock market is prompting investors' attention to U.S. dividend-paying stocks, with some seeking regular income rather than relying solely on stock price gains, market watchers said Friday. One option is the Dow Jones U.S. Dividend 100 Index, which tracks 100 U.S. companies selected for their dividend records and financial strength. To qualify, companies must have…
Investors are turning their attention to U.S. dividend-paying stocks as volatility grips the Korean stock market, according to market watchers. One popular option in the United States is the Dow Jones U.S. Dividend 100 Index, which tracks 100 companies for their dividend records and financial strength. To be included, firms must have paid dividends for at least a decade, demonstrating a track record of financial stability.
The index evaluates these companies based on their five-year dividend growth, return on equity, and debt levels relative to cash flow. These companies span various sectors like energy, consumer staples, and healthcare.
In Korea, Mirae Asset Global Investments' TIGER U.S. Dividend Dow Jones ETF has become the largest ETF tracking this index, with $3.41 billion in net assets as of Thursday. Some asset managers are taking this strategy further by combining dividend-paying stocks with covered-call options, which involve selling call options on specific shares to generate additional income.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- US dividend ETFs draw attention amid stock market volatility koreatimes.co.kr
